After a frantic weekend of negotiations, CIT, the lender to over a million small and medium businesses, won itself more breathing time with an emergency $3 billion loan. If finalized, the loan will help CIT avoid a bankruptcy filing, which warned would hurt the small business that depend on it.

The loan, which follows a U.S. Treasury decision not to bail out the group, comes with a heavy price, people briefed with the matter said, at an initial interest rate of 10.5 percent. It is expected to tide over the lender until it can arrange an equity for debt swap with its bondholders.

Sources: Financial Times, New York Times

Clinton Raises Hackles in India, Discussing Climate Change

Secretary of State Hillary Clinton waded into treacherous waters on a state visit to India, suggesting that India consider capping its greenhouse gas emissions. Speaking at a U.S. certified “green building” on the outskirts of the Indian capital, Clinton’s press conference turned feisty, with the Indian Minister for Environment and Forests, Jairam Ramesh, outright rejecting any such suggestions, and suggested that as the world’s greatest polluter, the U.S. ought to live up to such commitments first.

Sources: Financial Times

New York Attorney General Threatens to Sue Charles Scwab

New York Attorney General Mario Cuomo wrote to Charles Schwab this Friday, saying the attorney general’s office saying it may sue the online brokerage for civil fraid involving auctions-rate securities and other marketing policies. The attorney general’s office alleged that Scwab brokers were unaware of the risks involved in the sale of the securities, and later, failed to warn investors as the markets collapsed

Sources: Wall Street Journal

Google Voice Threatens Skype with New offerings

Google’s push into the Web phone-calling market is likely to cut into sales by Internet phone companies such as eBay’s Skype unit, and could put pressure on Microsoft and Cisco, which sell online calling software to businesses. Google launched Blackberry and Android downloads for its Google Voice offering, which allows users to make, receive and screen calls from a single, “unified” number, receive transcripts of voicemails and hide their cell phone and home numbers.

Source: BusinessWeek

Bernanke to Outline Policy on Interest Rates Tuesday

In his semi-annual address to Congress July 21st, Federal Reserve Chairman Ben Bernanke is expected to argue that he can manage liquidity in the money markets by perhaps setting up long term deposits at the Fed, and encouraging banks to keep money there rather than loan it out. In the address, Fed Chairmans in the past have used the opportunity to spell out long-term economic policy; Bernanke needs to convince Congress that he can manage the risk of inflation while keeping interest rates low to stimulate job creation.

Source: Bloomberg

After Strong Start To Earnings Season, Investors Fret

Last week’s surprisingly strong earnings – and accompanied leap in the markets - from stalwarts like IBM, Goldman Sachs, Inteland JP Morgan has investors on edge; will the rally continue? Over 200 companies will release earnings this week and the next, including most of the Dow Jones Industrial Average companies. If disappointing, the recent rally could dissipate, warn analysts.

Source: Wall Street Journal

KKR’s European Fund Board Approves Dutch IPO Plans,

Kohlberg Kravis Roberts may list on the Amsterdam stock exchange, after the managers of its European fund approved plans for a merger. KKR also received permission to consider listing on the New York Stock Exchange after a period of six months. The complex merger and listing plans will leave KPE, the European fund, with 30% of the equity in the company, which will have at least $50 billion of assets under management, and estimates second quarter earnings between $250 and $350 million

Source: Reuters